A study on customers' preference on e-commerce delivery methods in Singapore : home delivery versus self-collection

Author

Ng, Wendy Li Ting

Date of Issue

2017

School

School of Civil and Environmental Engineering

Abstract

Last-mile delivery is defined as the last segment of the delivery process and self-collection method falls under the broad category of unattended delivery. This project studies customer’s receptiveness towards self-collection as a delivery method. The objectives of this research are to: (1) conduct a literature scan to establish self-collection as the new state-of-the-art alternative delivery method, (2) identify factors that make customers choose self-collection as their main delivery method by testing the Diffusion of Innovation theory, and (3) determine customer characteristics that e-commerce players can utilise to plan their business strategy. A qualitative and quantitative approach was employed in this research. Qualitative areas of knowledge were gained through literature analysis and via interviews carried out with customers and industry players. Surveys were conducted and multiple regression analysis was performed using the responses. Characteristics of innovation were hypothesised to be significant and will have either a positive or negative influence on customer’s intention. Demographic characteristics were also tested for significance on customer’s intention. The results from this research show that only relative advantage, compatibility and trialability are key characteristics of innovation that can positively influence customer’s intention, thereby increasing the rate of adoption for self-collection. Amongst the five demographic characteristics, type of housing holds the highest significance. It is also found out that the pre-eminent step to improve customer’s intention is to integrate self-collection into customer’s lifestyle, making it natural for customers to choose self-collection. This project has attempted to deliver a facet of customer’s preference towards self-collection and could serve as reference for e-commerce players in the last-mile delivery field. Managerial implications and future perspective are also presented, painting a bigger picture on self-collection and last-mile delivery. Furthermore, future research can explore other factors relating to customer’s intention and on how successful Singapore’s locker systems will turn out.

Subject

DRNTU::Engineering::Maritime studies::Maritime management and business